TrueCar, Inc. (NASDAQ:TRUE), a digital automotive marketplace specializing in computer programming and data processing services, disclosed its financial outcomes for the quarter ending September 30, 2024, today. The details were released in a stockholder letter attached as Exhibit 99.1 to the company's current report on Form 8-K filed with the Securities and Exchange Commission.
The Santa Monica-based company, which operates under the name 06 Technology since its rebranding from Zag com Inc in 2005, has not made the contents of the stockholder letter public within the provided 8-K filing. Therefore, specific financial metrics, such as revenue, profit, or loss figures, remain undisclosed in this report.
TrueCar's operations fall within the services-computer programming, data processing, etc. industry, under the standard industrial classification code 7370. The company, incorporated in Delaware, has its fiscal year ending on December 31.
As per the filing, the information contained in the 8-K, including the financial results and the exhibits attached, is not considered "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor is it subject to the liabilities of that section. Additionally, the information should not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, unless expressly stated in such a filing.
The filing confirms that TrueCar maintains its business address and mail address at 225 Santa Monica Blvd, 12th Floor, Santa Monica, California, with a business phone contact of 800-200-2000.
TrueCar's stock, which is listed on the Nasdaq Global Select Market under the symbol TRUE, is publicly traded, and the company's financial performance is of interest to shareholders and potential investors.
The company's latest financial results are based on a press release statement and provide a snapshot of TrueCar's financial health as of the end of the third quarter of 2024. However, for a complete understanding of the company's financial position and performance, interested parties would need to review the full stockholder letter and accompanying financial statements.
In other recent news, TrueCar, Inc. experienced noteworthy developments. The company reported a 6.4% year-over-year revenue increase to $41.8 million in the second quarter of 2024, despite a revenue loss of $750,000 due to a malware attack. TrueCar's balance sheet remains robust with no debt and substantial cash reserves. The company also announced the promotion of Jill Angel to Chief Operating Officer, a move expected to facilitate TrueCar's operational ambitions.
BTIG recently upgraded TrueCar's stock from Neutral to Buy, pointing towards operational de-risking and a potential market turnaround. The firm also anticipates a rise in OEM incentives revenue in the latter half of the year. TrueCar has launched its TrueCar+ pilot program, offering over 3,000 vehicles for complete online purchase.
These are recent developments in TrueCar's strategic plans and activities. The company continues to advance its TrueCar+ pilot and engage new dealers, with Angel's promotion playing a key role in driving these initiatives. TrueCar's commitment to leadership is evident in its operational strategies, aiming to steer the company towards its long-term objectives.
InvestingPro Insights
TrueCar's latest financial results, while not fully disclosed in the 8-K filing, can be supplemented with some key insights from InvestingPro. The company's market capitalization stands at $392.19 million, reflecting its current valuation in the digital automotive marketplace.
InvestingPro Tips highlight that TrueCar holds more cash than debt on its balance sheet, which could be a positive sign for its financial stability. This aligns with another tip indicating that the company's liquid assets exceed short-term obligations, potentially providing a cushion for operational needs.
The company's revenue for the last twelve months as of Q2 2024 was $165.28 million, with a revenue growth of 8.74% over the same period. This growth, coupled with an impressive gross profit margin of 89.35%, suggests that TrueCar maintains strong pricing power in its niche market.
Despite these positive indicators, it's worth noting that TrueCar was not profitable over the last twelve months, with an operating income margin of -12.55%. This aligns with the InvestingPro Tip that analysts do not anticipate the company to be profitable this year.
Interestingly, TrueCar's stock has shown strong performance, with a 90.48% price total return over the past year and is trading near its 52-week high. This stock price movement, described as "quite volatile" by InvestingPro, may be of particular interest to investors considering the company's current financial position.
For readers interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for TrueCar, providing a deeper dive into the company's financial health and market position.
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